Posted by Tamara
The current Missouri minimum wage is the same as the federal minimum wage and applies to employers with $500,000 or more in annual revenue, and to businesses engaged in interstate commerce. Any Missouri retail or service business which earns less than $500,000 per year and does not engage in interstate commerce is not covered by either federal or state minimum wage law. In these scenarios, employers can legally pay their workers less than the state and federal minimum wage of $7.25 per hour. In some cases, agricultural workers are also exempt from the state statute.
The Missouri minimum wage law permits an annual adjustment, but there will not be an increase in the minimum wage in 2011. The adjustment is based on the regional CPI (Consumer Price Index) and the cost of living. Unfortunately, the cost of living was flat and the CPI decreased this year, so there will be no increase to the state minimum wage.
Missouri tipped employees can legally be paid just $3.625 per hour. These employees’ tips, however, must average $7.25 per hour, or the employer is required to make up the difference to minimum wage.
In January of 2009, the Missouri minimum wage rose from $6.65 per hour to $7.05 per hour. In July of 2009, when the federal minimum wage increased to $7.25, the Missouri also increased. Under Missouri state law, the state minimum wage cannot be lower than the federal minimum wage.
Under both Missouri state and federal laws, workers are entitled to overtime pay at the rate of 1.5 times their hourly rate when they work more than 40 hours in one pay week.
At termination, Missouri employees have the right to payment for wages owed the same day. The state doesn’t require, however, payment of unused vacation time, unless the employer has a written policy to do so or has done so in the past.
Each Missouri employer must prominently display employment law posters, including the state minimum wage.
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